From Stellantis, North America. Welcome, thank you for joining us. Software is everywhere. It is changing our lives and transforms many industries. Today, we will prove how disruptive the auto sector can be. We are not opening the way for software into the car. We want to reinvent the notion itself of designing, engineering, and operating cars. Our strategy is to disconnect the hardware and the software cycles to create a product that can evolve naturally and regularly. This approach will make the vehicle always fresh, make its value higher, and our customers happier. Of course, we want to own a broader scope of the software value chain. Let's dive into our strategy with our CEO, Carlos Tavares. Thank you, Yves. Good morning and good afternoon, ladies and gentlemen. Welcome to the Stellantis Software Day. I trust that you and your families are well. Please take care. I deeply appreciate your time and interest in Stellantis. Thank you again for that. Software strategy is one of the key building blocks of Stellantis' overall strategy, together with our EV strategy presented in July, to build the most sustainable mobility for our customers. Mobility is changing. Vehicles have become an integral part of the customer's digital life, with software-defined features constantly updated over the air. In alignment with Stellantis' mission, powered by our diversity, we lead the way the world moves. We will present today how Stellantis is now in full execution mode at full speed on its software journey. We are committed to deliver the best experience to our customers with three all-new AI-powered technology platforms to arrive in 2024, with a particular focus on connectivity with our brand new vehicle platform, with the software features constantly improving over the air; customer experience with a purposeful cockpit and interior with an immersive experience and connection to the digital world supported by AI; and autonomous driving through our AutoDrive platform. Of course, software will also support our EV strategy being deployed over our four physical EV platforms and vehicle types. Software will further magnify the DNA of our 14 iconic brands, creating a unique experience to each of our customers in the fastest and most cost-efficient way. Software will improve our business model, disconnecting hardware from software cycles and shifting the center of gravity of our business towards Stellantis' extended car path. We have already 12 million connected cars, we will reach 34 million in 2030. Six million OTA updates in 2021, in 2030, we will update our cars continuously, reaching 400 million updates per year. By 2026, we'll reach EUR 4 billion of revenue and EUR 20 billion by 2030. This new software business is at high dilutive margin, borderline to tech businesses margins than with traditional automotive margins. Software will support cost saving and avoidance to make Stellantis an even more efficient company, and will give an increased value to our customers with higher customization, longer life, higher resale value. More than EUR 30 billion of investment through 2025 to execute software and electrification transformation have been planned. We are on a rolling mode to anticipate the future. Let's see how. Thank you, Carlos. We now have a clear view of why that's safe. We are talking about a significant growth opportunity, a tech industry market. Let's now turn to our business and tech teams. I am so happy to welcome them on stage. Mamta is our Head of Business and Product. Joachim is leading software and hardware engineering. Vishnu is taking care of our cockpit and connected services. Thank you so much to be with us. We will start talking about how to deliver what our customers expect, continuously magnifying the DNA of their favorite brands with our software-based features. By the way, software is certainly one of the fastest and most cost-efficient ways to achieve brand differentiation. As you will see, we can unlock new revenue streams by monetizing our connected car path. Let's hear the specifics with Mamta. Thank you, Yves. Now it is my pleasure to show you how our evolving software products will add value for our customers and a sustainable economic benefit for our company. We are confident that we will achieve more than EUR 4 billion in additional revenue by 2026, and more than EUR 20 billion by 2030. This assessment is based on a realistic trajectory, and it comes with margins similar to those of tech companies. Our business plan is built on 5 pillars that personalize features for our customers and fleets across our 14 iconic brands. With 12 million monetizable connected vehicles today, we define monetizable as the revenue captured within the car's first 5 years of life. That number of connected vehicles grows to 26 million in 2026 and 34 million by 2030, with a global scale opening a world of opportunities in personalizing what, when, and how our customers want these services. Let's go through each one of these areas. First, through our services and subscriptions, we will magnify the DNA of each of our 14 iconic brands. By ensuring each service and subscription is uniquely brand specific, we intend to deepen that emotional bond between our customers and the brands they love. Take, for example, Faye. She is a social media manager who loves the outdoors. This hyper-connected millennial expects a fully personalized connected ecosystem, where products like her vehicle constantly deliver new benefits and value through every experience. Owning a Jeep Wrangler 4xe with the latest technology is an essential part of her outdoor lifestyle. The Jeep Adventure Guides subscription will be the ideal service for her. Having the ability to add new software-enabled features and the freedom to connect will provide more enjoyment as Faye continues to discover new adventures. With vehicle-to-vehicle communication capabilities, our Jeep brand community will stay connected and share adventures from the most remote locations, even without cellular connectivity. That is freedom of mobility. If the past was about increasing margins by moving customers north in hardware and trim levels, our future is about offering customers software-based services. Today, satellite radio subscriptions and connected navigation comprise the majority of our revenue in this category. We are already seeing a healthy conversion from free trials to paid subscriptions, and we expect a tenfold growth by 2030. Moving to the second pillar, features on demand. We will give our customers the ability to upgrade their vehicles in real time. Here are a few examples. Dodge is developing performance upgrades, launching actually next week, including driver-tunable software that will deliver an immediate horsepower boost while retaining the car's emissions compliance. Software will also enable Alfa Romeo to enhance the sportiness and bring the driver-centric experience to the next level. With the all-new Tonale, the instrument cluster will become part of the brand-new human-machine interface. For our Ram pickup owners, customers can increase the capability of their truck to handle greater loads. Let's talk about long road trips. The ability to customize their in-cabin experience with entertainment options like premium stereo, Wi-Fi, streaming music, or Fire TV built-in can be added easily on the fly. You can quickly see the opportunities unfolding. We are projecting annual growth of more than 50%. Our third revenue stream falls into data-as-a-service and fleet services business. With programs like the Stellantis Miles rewards program that we recently announced, we understand the lifestyle choices of our customers. We are the number one light commercial vehicle provider in Europe and one of the largest in North America. We will leverage that leadership together with Free2move, which is our car-sharing service fleet and data services business, to help fleet operators increase overall productivity while reducing total cost of ownership, continuously updating their fleets and helping manage their businesses much more efficiently. Using the aggregated data collected through the Free2move cloud platform, we can deliver added value to all of our customers. Part of that value will be through an all-new usage-based insurance program. I'm really happy to announce this program today. This will be offered through our captive financial services arm in Europe and North America first, and later in the rest of the world. We will also continue to share data with cities, with municipalities, map providers, other technology companies, and also our tier 1 suppliers. We estimate our revenue in this category to have a compound annual growth rate of more than 90% through 2030. The fourth revenue stream we have identified falls into the vehicle pricing strategy and corresponding resale value. Our research shows that customers see the value in enhanced connectivity, advanced driver assist systems, and infotainment options. Adding new content through over-the-air updates leads to a higher resale value. Some safety features like automatic SOS call assistance become standard on all of our latest platforms. According to ALG, features like these contribute to a higher residual value. The final pillar defines our efforts to continue creating very competitive vehicles in the market to improve conquest sales and cross-selling. Today's DS Automobiles very elegantly delivers on that promise. Tailored for DS customers, Only You is an exclusive high-end program offering a wealth of services that are personalized using the connected car data, and of course, with customers' consent. This will make the brand a lifestyle choice, transforming our customer's journey into a unique travel experience. Let me inspire you with the future of DS Automobiles. In a few days, my new DS will be delivered. I impatiently start answering the questions on the MyDS App to start customizing my experience. Cozy lodge in the Pays de la Loire or five-star hotel on the French Riviera? Modern or classical art? From these few questions, the virtual concierge is getting to know me. It's just arrived. The so-called cocoon effect suddenly makes sense. There's absolute silence, and the interior is as comfortable as a first-class seat. I'm getting to know Iris, DS's artificial intelligence, which lets me customize every single one of my trips. Available worldwide. She starts playing the Architectures de Jean Nouvel podcast, my favorite architect, which ends right about when I get home. I'm at the wheel of my new DS, ready for the tailored week-long road trip in Italy. Iris seems to have meticulously planned every detail. After 10 minutes, the windows turn into screens. Points of interest, restaurants, charming hotels. Nothing gets past Iris. In the back seat, our little girl prefers the infinity of space to the flashing landscapes. The directional speakers keep us safe from the spaceship beam noises. We can enjoy our playlist without a worry. As the sun goes down, my wife feels a bit tired. She stares at the stars and falls asleep reading the constellation names, which appear as if by magic on a glass sunroof. DS Automobiles, the French art of travel. I am especially fond of the Stargazer feature. On the after-sales service front, owners can effortlessly access vehicle health reports, coupons, and even schedule service appointments a bit before dinner. This drives more than a 10-point increase in service retention. Additionally, we have a growing list of revenue-sharing agreements with leading entertainment and technology companies. We will see an increase of more than 60% across all of these five pillars of revenue through 2022. We also leverage connected car data to identify quality issues faster. We have 12 million connected cars in operations today, providing us with a wealth of data, more than 3 trillion data points, generating timely, actionable intelligence. Year to date, we have made more than 6 million over-the-air updates. In fact, these actions have contributed to Ram and Dodge brands ranking first and second in the most recent J.D. Power Initial Quality Study. Using vehicle data for early detection of issues is not only improving overall vehicle quality and our customer satisfaction, it's also generating EUR 1.1 billion in savings by 2030. I'm super excited about these five pillars of growth and the value creation for our customers. Let me hand it back to Yves. Thank you, Mamta. Thank you very much. I'm so excited, and I'm sure our customers will love it. We have five clear business lines that generated EUR 380 million revenue in 2021. We have full roadmaps for each of those business lines and a clear go-to-market. By 2030, we will address a fleet of 34 million connected vehicles with a revenue ambition of EUR 20 billion. Let us now talk about the technology that supports this plan. One thing we know is that technology is constantly evolving, and we need to create future-proof platforms, which is why our strategy is structured around developing open platforms that will continuously evolve. Platforms where software cycles are disconnected from hardware cycles. Platforms that are designed for their capabilities, where features can be continuously added and upgraded over the air. Platform that will become better over time, thanks to AI. With this platform, we will be fully leveraging Stellantis scale and benefit from the economics of software. Joachim, can you guide us through our tech platform strategy? Thanks, Yves. I'm so excited to tell you how we are already making our future a reality. STLA Brain will be the number one solution platform that allows us to rapidly and continuously build the leading solution in connected services, automated driving, cockpit, and powertrain, powered by software, hardware, and AI. STLA Brain is our centralized architecture with a large central brain ECU surrounded by zonal ECUs, aggregating the sensors and actuators and the edge ECUs driving all the functions in the vehicle, from off-board systems, initialization, charging, vehicle access, autonomous driving, entertainment, a third living space, and drop-off of passengers, and finally parking the vehicle. STLA Brain is a service-oriented architecture, which gives us the ability to act and react faster than ever before. It represents an end-to-end solution connecting onboard and off-board. In addition, it will have APIs to abstract and access all the vehicle sensors and actuators. Displays, navigation, plus hardware and software layers to enable fast application development on top. These applications can access all sensors, all actuators, and will enable us to fully create an end-to-end solution. Dynamic processing of data and workloads between the car and the cloud, and continuous software delivery will be enabled by the zonal architecture and accelerated with 5G connectivity. In the past, it was about a specific architecture for a specific set of features and SOAs. The future is about capability. Capabilities like processing power and hardware headroom, 100% ability to update over the air, and a data upload channel to add customer-centric solutions over the full life cycle of the vehicle. STLA Brain represents a software-defined vehicle platform of capability. We are on track to launch the STLA Brain in 2024 on STLA Large, the vehicle platform. We will quickly roll it out into all our vehicle platforms, from small to medium, large and to frame within the 2 years after. Let's look into some specific domains like cockpit, autonomous driving on top of STLA Brain. Now I'd like to bring up Vishnu to talk about these cockpit solutions. Thank you, Joachim. Now let me take you into my technology world of creating the best ever cockpit and creating it always refreshed. Let me start with the latest first. We have over 12 million connected cars on the road today, and just this year, we have delivered over 6 million over-the-air updates to improve in-vehicle experience. This is just the beginning. We will be able to update all our software-centric ECUs inside the car, and this capability will grow to over 34 million connected cars by 2030. Let's now switch back to the topic of creating the best ever cockpit. We call this STLA Smart Cockpit. Our mission is to transform your vehicle into a personalized living space. The new Grand Wagoneer, with its combined 75 inches of screen space and multi-zone communication, is just a taste of what's to come. The foundation of STLA Smart Cockpit is the next-generation multi-modal user interface. It's a more natural way to interact with your vehicle, and this is enabled by a combination of several sensors, including touch, voice, glance, and gestures. Think about the possibility of you commanding your car to execute a parking maneuver by just glancing at an open parking spot and nodding your head. Isn't that cool. That is STLA Smart Cockpit experience. The whole experience will be further enhanced with addition of augmented reality capabilities. A good example of how we are advancing towards augmented reality is in the extended heads-up display in the DS 4 car today launched in Europe. Our immediate focus is in bringing new content and connected services, including streaming music, video, and games, and remote control features to our existing cars on the road. We are leveraging our partnerships like Foxconn Mobile Drive joint venture to help us bring consumer experience and also the consumer pace of innovation in the STLA Smart Cockpit. Our ultimate goal is to make the vehicle the most wanted and most captivating place to be, even when you're not driving. This is enabled by focusing on stationary use cases to transform the vehicle into a personalized productivity zone, a personalized gaming station, a study center, a creative studio, or even a wellness arena. The universe of connected Stellantis cars is growing by millions every year. To connect with the ecosystem of developers, we are launching the Space SDK. To spark the imagination of the developer community, we are also launching a grand hackathon with the theme of gamification, and this is backed by a $50,000 prize money. Isn't that exciting. Now handing it back to you, Joachim. Thank you Yeah. I really look forward to the results of the hackathon and all these submissions, and seeing the winning solution coming to our vehicles. Let me now focus on our autonomous driving development. As Vishnu noted, working with partner systems. This is also true for our strategy for STLA AutoDrive, in implementing advanced driver-assistance systems and automated driving. For up to level 3, we are co-developing with BMW, and for level 4 and above, we are partnering with Waymo. We are already selling the best level 2 solution in the world for up to 180 kilometers an hour, with semi-automated lane change also released this year. Just two months ago, we demonstrated the potential of level 3 autonomy with our level 3 pilot project in Europe, where the team accomplished a fully automated trip from Paris via Strasbourg to Hamburg, totaling over 1,000 kilometers of autonomy. Level 3 pilot represents European flagship innovation project to test the viability of level 3 automated driving on public roads. For STLA AutoDrive, we are working with BMW. We have several hundred people working on STLA AutoDrive worldwide. We are progressing well, and we are releasing our first L3 solution in 2024, coming out of this partnership, and rolling it out across our full portfolio in the years after. We continue our collaboration with Waymo to deliver L4 automated driving. Stellantis is continuing the partnership with Waymo, the world leader in level 4 autonomous driving. We are already working with Waymo on L4-ready Pacifica Hybrid minivan, used in Phoenix, Arizona, which was the first commercial autonomous ride-hailing service worldwide. The solution was driving more miles in L4 autonomy than any other vehicle on the planet. Now Waymo works exclusively with Stellantis as their preferred partner on the development and testing of L4 autonomous light commercial vehicles. Together, we are co-creating autonomous LCVs, starting with the van ProMaster, to meet the wide range of our global customers. We are planning to deliver the first vehicles to them in 2022 for joint development. Earlier, we heard from Yves how important AI is in our vehicles. Mastering AI is fundamental for applications like STLA AutoDrive and STLA Smart Cockpit. Also, in AI, the right capabilities will make the difference. We are aggressively building capabilities. I'm happy to introduce you to Neda Cvijetic, who joined us recently to lead AI. Thank you, Joachim, and hello, everyone. My name is Neda Cvijetic. I live in the Bay Area in the heart of Silicon Valley, and I'm Head of Artificial Intelligence and Autonomous Driving at Stellantis. I have worked with some of the most innovative and agile tech companies in the world, and I'm bringing that experience and that spirit into my mission at Stellantis, to create breakthrough customer-centric AI capabilities for our vehicles, including in autonomous driving and cockpit applications. What I'm most excited about in this role is the tremendous scale of the transformative impact that this will have. Please be tuned. Back to you, Joachim. Thanks, Neda. I'm so excited that we have you as a lighthouse talent, and under your leadership, we will have wonderful AI-based customer solutions coming out of your organization. We will drive together AI across all domains in the area of world perception and planning in autonomous driving, voice and hyper-personalized digital assistant in cockpit, and Vishnu's organization. Based on this, we will release multiple AI solutions in the coming three years on our existing platforms and growing even faster based on our STLA Brain platform in 2024. We will launch STLA Brain as a minimal lovable product in three years from now. From all cars, we will collect data on usage and driving situations and update or even upgrade our solutions over the air. STLA Brain, this means we will release it, for example, with an L2+ STLA AutoDrive feature, and we will upgrade it over lifetime up to a L3+ solution. In addition, STLA Smart Cockpit will come, for example, with conversational speech and evolve to hyper-personalized digital assistant. With quarterly updates, this means hundreds of new features, and this will result in the service number shown by Mamta earlier. This means we can dream up together features, even something we have never thought of yet, for vehicles and for 10 years after they were built. To sum this all up, we are creating customer-centric features and services that will be continuously updated and refreshed, enhancing, creating value for all our customers and all our 14 brands. We are creating STLA Brain architecture for all our vehicles, starting in 2024, together with number one solutions in cockpit, powertrain, and autonomous driving. It lets us deliver unprecedented performance to create and react quickly. We are creating a customer-centric flywheel enabled by capabilities, platforms, and data to create applications, solutions, and services to delight you as our customers. Thank you. Handing back to Yves. Thank you, Joachim. Thank you. I'd like to thank the whole team, including Mamta and Vishnu, for sharing their vision and plan. As always, success of this strategy will be driven by execution. The good news is that our track record as a company is all about execution. Here, we want to add two very specific drivers. First, we have reduced complexity to a minimum with few platforms, leveraged at scale, deployed quickly, and continuously maintained up to date over the year. Second, the capability building piece is core to our plan. Let's talk about our capability roadmap. It is based on both building internal capabilities and decisive partnerships with tech leaders. On the internal front, consistent with our purpose, powered by our diversity, we are building a global network of talent around the world. Software is reshaping the future of mobility. We at Stellantis are uniquely positioned to make it happen with the scale we can leverage to deploy innovation. To make this a reality, we are creating a Software and Data Academy with the objective to retrain and develop 1,000+ people in multiple roles like data analytics or scrum masters. We are hiring software talent with a global approach covering Americas, Europe, as well as Asia, to make sure we effectively tap into the global talent pool and create a truly global software team. We are targeting a Stellantis team of 4,500 people by 2024, not comprising the partnerships that we detailed in a minute. These partnerships will also create the opportunity for teams to develop in a truly open ecosystem, by the way. To show you some of the profiles and the skills we are attracting at Stellantis, I'd like to show you two videos. They are just two examples of Stellantis people who decided to take a leadership role on the ambitious and exciting journey we are building together. Let's hear from them. Hi, my name is Marco Ringer. I live in Schaumburg, Germany. I'm heading the integration within the software organization within Stellantis Software Excellence. Before joining Stellantis, I worked for some of the top automotive hardware and software suppliers, as well as for one of the most iconic vehicle brands. I'm very passionate about our mission because I've always believed that the car is the most personal and complex tech product on the planet. Bringing this product and services to the next level is one of the coolest jobs I can think of. My family and I have already experienced carbon credits in our own fully electric vehicle. I'd like to invite you join me to create this experience and beyond for everybody around the globe. I joined the software organization at Stellantis two months ago. I live in Seattle, Washington with my family. Prior to joining Stellantis, I worked in the video game industry, partnering with development studios on some of the biggest console, PC, and mobile games in the world. Before that, I spent time in both the entertainment and telecoms industries in the U.S. and in the U.K. What attracted me to Stellantis was the opportunity to be part of transforming a 100-year plus automotive giant into a global software and analytics leader. In addition, the chance to ensure that this software evolution affects real societal change is immensely exciting. We have the chance to improve accessibility and mobility for millions of people, contribute to significant reductions in emissions with electrification, develop amazing new safety features with AI, and increase the life of vehicles and their components. Lastly, the chance to create the next big entertainment and productivity platform, enabling amazing experiences for our customers, is an opportunity that can't be found anywhere else. We are thrilled to have them on board. As I was saying, the other leg of our capability building strategy is based on focused partnerships with tech leaders. We have established decisive partnerships on key technology platforms to share non-differentiating components and maximize speed and efficiency. As part of it, final agreement with Foxconn to create Mobile Drive has been signed and approved. We have now obtained all regulatory approvals and are proceeding to the closing before the end of the year. Foxconn is bringing its mobile internet expertise, speed of execution, and a reinforced access to the Asian software talent pool. For autonomous driving, Joachim explained our partnership with BMW and Waymo. We are currently working on our semiconductor strategy, and I will say more about this. As you have seen, we have strong ambition and a clear roadmap to make it real. Enough with strategy and plan. Let me show you what we have in mind, because it is closer than you think and more than a pure concept. It's called Airflow. Carlos had the chance to drive and test it with the software engineers. Let's watch it together. What a smooth ride it is. Fantastic. Tell me, which extent are you going to bring to the automotive world the experience that these customers are looking for, and specifically the experience That's the technology-driven customers are expecting from us. The Airflow really what represents is a third space. Customers are no longer looking for just a product to get them from point A to point B. They're really looking for this kind of connected hub that allows their digital lifestyle to travel with them. This is all real. This isn't just a concept. This is something we're looking to bring to market soon. I see exactly what you mean. How do we enhance the lifecycle management of our products? To which extent are we going to be able to use software to enhance the lifecycle management of our products and keep our business lively and, of course, productive? Software actually controls almost the entire occupant experience in the vehicle. We're actually over-designing the hardware so that it is capable of adding new features over time. That should have a very positive impact on the residual value of our product at the end of that specific ownership, I think that's going to be a great value creation device. What you see here today was all created virtually and tested for user experience. It helps us to bring this faster to the market, also reduces development cost for us. It is about continuous development and continuous deployment enabled by our software architecture. I understand that lifecycle management is not going to be only about headlamps and bumpers in the future. That is going to add significant value to our business proposition. Speaking about the continuous integration of features, the new electrical architecture was designed for easy feature enhancements and additions. Standard computing power has allowed us to consolidate the vehicle functions into a smaller number of high-performance computers. We can add new features over the air even after the vehicle has been delivered. This keeps the vehicle fresh and new. It also makes it more and more capable over time. Using that power, how are we going to bring the consumer electronics and the gaming experience to the automotive world? How do we bring all of that value to our business at the end of the day? This is one of the most exciting parts of the job. We're actually working together with multiple partners to put an experience like the Airflow together. On the experience standpoint, we hired UX designers with psychology backgrounds. We want to integrate all of this consumer electronics-like content. We hired mobile and web designers, for all those amazing visuals that you see on the screen, we actually hired entertainment and gaming designers to help us put that together. For example, in the Airflow, you can seamlessly join a video conference through the integrated system of cameras, displays, and audio systems, in the comfort and privacy of your cabin. It's about putting the right information at the right place. Right. I can guess that I'm going to have some meetings in my car in the future. Correct. Yeah, I think to build on that, autonomy is a brand new experience for our customers, the most important thing that we can do is build trust with them. To build trust, we need to put them at ease, while the system is working. Right. It's all about trust. Yeah. Trust the brand, trust the technology, trust the engineering that we are bringing to the market. It's absolutely exciting to listen to you because we feel that our industry is full of talent, expertise, and I think that many people do not understand to which extent we are consolidating. Right I trust that this team is going to bring us fast and strong in the tech company direction, which is exactly what our long-term strategic plan is going to be about. Absolutely. Thank you. Absolutely. Thank you. Thank you. Sounds like the future is already here. Our industry is in the midst of a deep transformation. This transformation is through initiative, creativity, innovation, and in the end, it will have made cars a better, healthier place for our customers. We at Stellantis can lead this transformation, and to discuss where we want to lead to and the magnitude of the change we are all addressing, I will invite our CTO, Ned Curic, to join me on stage. Hello, Ned. Glad to have you here. Hi, Yves. Great to be here with you today. Thanks for having me. You joined Stellantis a few weeks ago after many years at tech companies. As you mentioned, I just recently joined from Amazon, where I spent a number of years. I really enjoyed my work at Amazon with my team, and obviously some amazing tech and products that our customers love and enjoy every day. What gets you excited at Stellantis? What innovation is Stellantis bringing to our customers? Cars are very sophisticated devices, and the entire sector today is entering an immense and exciting digital transformation. Our teams are creating and innovating on so many different technological fields and technical fields, such as solid-state battery tech, new battery charging systems, new electronic propulsion systems. We're also working on new technologies that integrate new materials, electronics, artificial intelligence, and of course, we're working on autonomous driving, and inventing whole new sets of future experiences. What do you see for the future right now in this sense? In the next 20 years, Yves, we'll have an opportunity to truly redefine the cars and how we experience them. This transformation will be rapid and really big. It's truly an exciting place to be for any engineer that want to work on exciting technology. While you're creating our overall technology strategy, how critical is software to that strategy? Great question. Today, customers expect their cars to do more than just be cars, to be integral parts of their lives. They expect cars to be always connected Smart, being aware of their personal preferences. Before they leave their house, for example, the car will notify the owners if they have enough charge to get to the destination, and where to charge along the way. Cars will communicate with the smart home, and it will close the garage door when the owner forgets to do so. It will prime the house, adjust the alarm, deconfigure the house climate system, and so forth. When in the car, customer will have a predictive navigation system and will continue to consume the same content that they just enjoyed at home. It will be another level of mobility freedom for our customers. Yves, this is all done with software. It's the software that makes these experiences possible. Of course, we need to build the holistic system with all the right hardware to ensure that we have all the underlying capabilities to enable the software to build the features and services, which will then turn into customer experiences. I think we're intensively working on our semiconductor strategy. Can you tell us a bit more about this? Of course. Well, the cars are ultimate mobile device. They're packed with technology. Vertical, hardware, and software integration is very critical to deliver the kind of experience that we just talked about. In the next four years, we will be launching close to 50 low emission vehicles across our 14 brands. To ensure we deliver on the customer promise, a radical platform simplification and vertical integration is really needed. How about our partners in this strategy? In addition to working with existing suppliers that we have a great relationship with, we decided to partner with Foxconn to simplify our diverse semiconductor portfolio in design for families of chips to cover about 80%-90% of our semiconductor needs. As a result, we will simplify our supply chain. We will be able to interchangeably use semiconductors for different electronic modules, hence create a self-redundant supply chain system. Thanks a lot, Ned. Thank you for sharing your thoughts. Our software strategy is a huge step ahead on our transformational journey to a tech mobility company. This approach will also transform our business model from a product-centric to a customer lifetime-centric approach. It will further shift the center of gravity of our business towards recurring mobility business. It is opening up new opportunities that will translate into significant growth at attractive margins. I would like to invite Richard Palmer, our CFO, to share with us the economics of the plan. Thank you, Yves, and good day to everyone. As my colleagues have outlined today, software is driving an unprecedented transformation in mobility, one that will progressively integrate flexible and customized mobility into our daily lives. For Stellantis, this transformation provides the opportunity to create even stronger bonds between our customers and our iconic brands and vehicles, enabling customers to upgrade and personalize their vehicles throughout their entire ownership experience. First, let's recap where Stellantis is today on its software and connected services journey. At the beginning of this year, we combined two very successful and experienced companies, both of which had iconic and diversified product portfolios. Both companies were in the process of expanding their software and connected services businesses, which included key offerings, and this transformation is now being accelerated. We have a very solid foundation on which to build. We have 10 years of experience in connected services, approximately 12 million connected vehicles in customers' hands globally, and 400,000 customers currently subscribing to our connected services offerings. 2021, our revenues in software-enabled services and features stand at around EUR 400 million. To quantify the opportunity for a truly global mobility provider like Stellantis, some analysts estimate there will be a total addressable market for software-enabled mobility-related services of more than EUR 200 billion by 2030. Now, let's recap the five pillars of software revenue opportunities that Mamta described earlier. Firstly, services and subscriptions. This includes categories such as safety and security, entertainment, navigation with live traffic and travel information, and remote operations. Next, features on demand, which can be turned on and off by the customer to cater for one time or monthly needs, and which can also be regularly updated through OTA. The third pillar is data as a service and fleet services, which includes features such as usage-based insurance and data collection for expanded services for fleet management. These three categories will all give rise to subscription-based revenues. The remaining two categories arise from the impact that these new offerings will have on vehicle and mobility services revenues by improving our competitiveness, our price realization, and customer loyalty. In addition to revenue generation, software-defined vehicles will also facilitate cost reduction. Delivering upgrades and features with over-the-air updates will quickly become the norm for all customers, and this OTA capability allows us to fix customer issues faster and at dramatically less cost than a service visit to a repair facility. By leveraging the additional vehicle data from our software-defined vehicles and more frequent and convenient over-the-air updates, by 2030, we expect to benefit from over EUR 1 billion in annual cost savings. We envision significantly growing our software-enabled revenues between 2021 and 2030, particularly in the second half of the decade, once our connected car park has access to more and more product content. We will also see a shift in the contribution of revenues from each of the five pillars. As I mentioned, today, Stellantis has approximately 12 million connected vehicles across the globe, and the majority of the software-enabled revenues we generate come from content included at the vehicle sale. From 2024, we will start rolling out the new STLA Brain electrical and software platform in our 4 STLA vehicle architectures, and the number of monetizable connected vehicles will increase to approximately 26 million by 2026. The features and subscription-based services offered on our vehicles will also increase notably, leading to a revenue opportunity estimated at around EUR 4 billion. Increases in new vehicle pricing and resale values will still account for more than half of our 2026 software-enabled revenues. However, the other categories will have begun to expand, particularly revenues from data as a service and features on demand. By 2030, the connected car park is expected to reach approximately 34 million vehicles. With this expanded car park built on the 4 common global architectures, we believe the software-related services inherent in our mobility offering could be worth incremental annual revenues of approximately EUR 20 billion. These new revenue streams will drive strong margins, which will be accretive to our current adjusted operating income margins. To be clear, these incremental revenues and accretive margins do not include revenue opportunities from level 4 and level 4+ autonomous driving. In this technology area, we continue to work with our partner, Waymo, in the development of level 4 and level 4+-equipped vehicles. As we make progress together, we will update the market. We believe that this opportunity can be a game changer for our LCV business and our customers globally. We are fully committed to becoming a leading sustainable mobility tech company, and will execute on this transformation with more than EUR 30 billion of planned investments in electrification and software through 2025, as we announced at our EV Day in July. Above all, these software-related services will create a priceless, constant connection between Stellantis and our customers. Thanks for listening. I'll now turn it back to Yves. Thank you, Richard. Our business and tech teams are fully committed to execute this plan and eager to make it happen. We will be working at full speed to reach our 2030 ambition. A fleet of 34 million connected vehicles generating EUR 20 billion of revenue at attractive tech margins. We will be among the first to deliver those open tech platforms to our customers. We have now come to the end of what has been an intense presentation. Before I hand it back to our CEO, let me thank everyone at Stellantis who have worked hard through different time zones to build our strategy and start implementing it. They are not on the podium right now, but they make a true difference for our customers and for the company. Let me now welcome back our CEO, Carlos Tavares, for closing remarks. Thank you, Yves. Software is one of the key pillars of our sustainable future at Stellantis. Stellantis enjoys three differentiating factors. Software will efficiently magnify our strong 14 brands. Stellantis is uniquely positioned to scale software, our proven velocity of execution and our focus on simplification will make a difference in implementation. We are indeed transforming Stellantis into a mobility tech company, delivering tech content with agile processes. You could sense the deep commitment of our team to deliver on our software strategy. Three technology platforms, an accelerated rollout on our four physical EV vehicle platforms. Continuously upgrading vehicles over the air, offering new releases every quarter, ramping over-the-air update capability to our teams. Within three years, 100% of all new vehicles will be OTA updatable. Capability building. Software team over 4,500 people by 2024, creating a global network of software talent around the world. With existing talent, taking advantage of our diverse global engineering, upskilling more than 1,000 people through our Software and Data Academy, hiring software talents in all regions from technology and other industries. Besides these partnerships with technology leaders, Foxconn and Waymo, without forgetting our partnership with BMW, continue to drive innovation in an efficient manner. We are, in fact, co-developing with them. Software will positively contribute to our results with EUR 20 billion of revenues by 2030 at a relative margin in line with tech companies. Powered by our diversity, we lead the way the world moves. We invite all of you to the presentation of the Stellantis long-term strategic plan on March 1st, 2022. Thank you again for your time today. I look forward to your questions. Thank you, Carlos. Thanks to all of you for your attention. I would like now to invite Carlos, Richard, and Ned to join us for the Q&A session. We will now start the Q&A session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, please press star two. You will be advised when to ask your question. To allow as many people as possible to ask a question, please could you limit yourself to one question? The first question comes from the line of George Galliers from Goldman Sachs. Please go ahead. Thank you. Thank you for the presentation. I wanted to ask two questions, if I may. The first one is strategically how you think about this. I think it's reasonable to argue that software is not a core competency of traditional car companies. It might be argued that it is close to a core competency for some of the new entrants into the automotive market that we're seeing. The question really is, why have you decided to develop the software internally rather than ask a partner who has software as their core competency to do the development work for you? Is there not a risk that some of the new market entrants that do have software that's closer to a core competency, that they're able to advance more quickly than yourselves? The second question is with respect to the revenues. Richard, I think you mentioned that they will be accretive to margins. Can you give us any indication of what the kind of drop-through would be that you would expect on the EUR 20 billion revenues from software-related services? Is it reasonable to assume that it would be an extremely high drop-through, where the development investment has been made, the hardware is fitted, so effectively, as and when consumers sign up to these services, there's no incremental cost to yourselves? Thank you. Thank you for those two very important questions. Let me start with the first one, and then I will hand over to Richard for the second one. On the first one, we believe that software is core. It's a core expertise that we are now full speed developing. There is no way we are going to consider that this can be totally subcontracted to somebody else. Reversely, we do not consider that doing everything ourselves is the right way to go, because we can also enjoy great partnerships with people who, at this precise moment, may be more skilled than we are. We are on a two-path direction. First one, to recognize that having strong partnerships makes total sense in terms of co-development, and that's what we have been building with some of our strategic partners like Foxconn or Waymo. Strong partnerships bring, at a higher speed, a significant level of performance to our company. There is a mid- and long-term recognition that it has to be core to our expertise as the customer experience is moving us in that direction, and we do recognize that, and we do recognize that making our customers happy is the only way to be sustainable, hence the fact that to enhance this customer experience, we need to be in control of some of those softwares. Last but not least, we also see that there is significant business that is attached to this direction, as you have seen through this presentation, which means if there is significant business, then some of those expertise need to be inside of the company. That's what we are right now doing. We are managing the shifts that we see. We are managing the customer experience enhancements that we believe is absolutely necessary, and we are doing it in a two-time window kind of approach, the short-term, the mid-term, the partnerships, and at the same time, we are investing in our future. As you have seen, we are investing heavily, and we are blessed. We are really blessed with one thing that eventually we did not explain enough, which is the fact that Stellantis is becoming a very attractive company for people who want to demonstrate their skills in terms of software. We are receiving a significant number of resumes. People who understand that this company is on the move, and this company is moving in the tech direction Without, of course, putting aside the fantastic history and the iconic brands and emotions that we are able to communicate to our customers. We want to combine those two things, and of course, we want to accelerate. We are on a rolling start. We are now accelerating, and that's the message that we wanted to send to you today. On the second question, Richard, would you like to take that one? Yeah. Thanks, Carlos. Well, George, I think to your point, the way we look at the margin structure, at this stage, is that it's going to be strongly accretive to our current double-digit margins that we are running at and that we have indicated as our sort of medium-term sustainable margin target. If I look at tech margins of other large tech players today, they're clearly double the sorts of margins that we run at today. I think that would be a baseline that we would be targeting for this new business. Clearly, we're looking at a fair way out here in terms of forecast. I don't want to get too specific in terms of the margin aspiration, but I think we're pretty confident that this business area with the types of service and products that we can cluster around our mobility offering with the brand we have, will allow us to have a strongly accretive margin on the EUR 20 billion of revenue that we are targeting to generate. The next question comes from the line of Horst Schneider from Bank of America. Please go ahead. Yes, good afternoon. Thanks for taking also my questions. The first one that I have that relates actually to this revenue business plan that you presented till 2030. It's just striking that the service revenues per vehicle, that they are rising over proportionally towards 2030. I just want to understand what is behind it. If you talk about these five key pillars, can you maybe provide a kind of split, how the revenues split between these pillars and how this split is changing from 2026 to 2030? Is it right to assume that in these 2030 revenues, there are also auto subscription revenues included and that drives basically the value up significantly? The second question that I have that relates basically to this partnership that you've announced, because I want to understand what is, in your view, really then a partnership and what that means. You just buy content from these partners, or is there any profit-sharing agreement later on? What are the details of the partnerships, for example, with BMW? I think that's now the new one as well that you announced. Thank you. Those are two great questions. It's true that we have a very detailed plan on each of those business pillars, the five business pillars that you mentioned. Of course, we are trying not to unveil all the details to our competitors, but it's true that there are different dynamics of profitable growth on each of those pillars. I would like to hand over to Yves. He's going to give you more details, Ned will talk to you about the strategic partnerships that you were alluding to. Yves, can you take the first one, please? Sure. Thank you, Carlos. You saw in the figures that Richard shared that the share of the revenue, which is related to MSRP and retail value, fails to go to after 2026. Of course, as you move forward in time, the subscription part of it, is going to be growing faster. By 2030, this proportion will look different. We don't want to disclose a detailed figure at this stage. What I can tell you is, the trend is that subscription-based business will grow faster. The data, and related services such as UBI, is also one of our fastest-growing elements in the business plan and will represent a significant share of the total value. That's what I can disclose today. On a strategic partnership, obviously the vehicle is becoming more complicated. Vertical integration is critically important, hence our desired needs. What we're going to do right now is vertically integrate electronics with the software so we can deliver the kind of experiences that we plan to deliver next couple of years. The Foxconn partnership is exactly that, build families of chips to completely simplify our supply chain and provide the vertical integration that's required. Those same family of chips will be available for others to purchase as well, that's part of the Foxconn relationship. The BMW partnership, the core technology in autonomous driving is expensive to develop, sharing the cost of a core technology development is a great deal for us and for our partners, BMW. We're going to have unique developments, in terms of experiences, in terms of services that we build, those are the kind of experiences we uniquely are going to build for our own brands. The next question comes from the line of Thomas Pichon from Kepler Cheuvreux. Please go ahead. Thank you very much. It's Thomas Pichon, Kepler Cheuvreux. I have two questions as well, please. Essentially about the reconciliation, about your comments on car affordability that becomes an increasing issue with these additional revenues you expect the same customers to pay. Can you help us understanding that, please? The second question is more about the perception of what you're saying. How can you make these targets more credible? Clearly, you're making very impressive returns currently. You're talking about increasing them with software earnings that would be accretive, you're still trading on very low multiple. At what point are you going to be able to tell us that you're going to buy your own shares? That could be your best investments for your excess free cash flow versus anything else, if what you say is true and the market for the time being, remains skeptical. Thank you very much. Well, thank you so much. Thank you for the two very thoughtful questions. I will hand over the first one to Yves, then let me take the second one. First of all, you are right. We are in a very highly transformative period. It's absolutely clear, that's the reason why we are here with you today. That's the reason why we came to you in July for the electrification Capital Day. We want you to understand that we are on the move, we are full speed transforming the company, of course, we will group all of those pillars in the presentation that we are going to make on March 1st, 2022, of the long-term strategic plan for Stellantis. Yes, we are on the move. Did the markets completely recognize the depth and the breadth of the transformation of Stellantis? Possibly not. That's something that we could speculate on, but possibly not. What we will show you on the long-term strategic plan is that there is a huge potential, with this transformation, but there is also a huge potential in making sure that we bring the best of Stellantis to this transformation. Make sure that we are going to leverage not only what one could call the defensive part, but also the offensive part. I think there is a lot that we can do, and certainly a lot that we can do to convince you that there is much more value creation to be unleashed by Stellantis. The message today is, this company is on the move in terms of becoming a tech company through the software initiative. We are hiring, we are getting a lot of very different talents to the company, and I see that those people are finding the right breadth, the right breathing space in the company. We are giving them the right capabilities for them to execute this plan. I'm very confident that this plan will be delivered as always with this top executive team, that's where we are. Hopefully at one point in time, our investors will recognize that, yes, we have much more potential than what the market cap is today showing, and that's the reason why we are having this dialogue with you. Yves, on the first point. Thanks a lot for the question. I think that's fundamental to understand why customers are going to be attracted by subscribing to those services. One fundamentally different with the plan versus what used to happen before, is that we're going to be developing continuously new features. At the time where customers will buy the car, we will continue to develop features. Some features that will become available were not available at the time where the customer is going to buy. This is really an opportunity for them, to improve the vehicle with things that were not, I would say, fulfilled at the time where they build the car. We see some market research telling us that this is something attractive for customers. The second thing is, we do today already some business in terms of subscription, we want to grow that business. Obviously, we see a general trend in the market that people want to pay for what they use, kind of pay-as-you-go type of approach. We see this as a very strong driver, including, of course, in the automotive industry. The third element regarding the subscription business is that we're just going to release new lines of business. If you take the usage-based insurance business that we're announcing for next year in North America and Europe, this is something new to us at that scale. We are going to make it a very significant and attractive business for our customers. You see there are a number of reasons why people would subscribe on top of their initial purchase of the vehicle. The next question comes from the line of Jose Asumendi from J.P. Morgan. Please go ahead. Thank you very much, Jose, J.P. Morgan. One question, please. Thank you very much for the presentation. Very interesting and thoughtful. Just coming back to the revenue opportunity, but also the cost implied in generating this revenue. Can you talk a little bit about how you plan the semiconductor content at range between the STLA Small platform and the STLA Frame platform, and how you are customizing that semiconductor content across different vehicles to generate the revenue? Maybe just as a quick follow-up, Richard, I didn't see the number disclosed for investment specifically for software. For software, you're giving us a number for electrification and software at the same time. Is there a number for software, please? Thank you. Well, thank you, Jose. Those are great questions. Let me take the first one, then leave the second one for Richard. On the first one, then Ned will decide if he wants to complement. What is quite exciting about the semiconductor strategy is that we have discovered a new area for optimization. Through the semiconductor supply shortage crisis, we started to dig in, we were able to develop a lot of alternative ideas, alternative ways of going around the problems that we were facing. By doing that, we discovered a huge area of diversity complexity that we can optimize. We also know that on a mid-long term basis, we are able to jump to the next generation of products, which will be at a higher level of performance, with a lower diversity complexity, with a very clear supply strategy. That's where we are preparing. It's not short-midterm, it's mid-long term. Of course, it needs some significant work, but it's an area for optimization that we were blessed to find, through the way we have been addressing this supply shortage crisis. As you have been seeing through the numbers, our teams and our monozukuri teams have done a stellar job, to protect the company from those crisis. That's where we are going. I don't know, Ned, do you want to add something to this? It's really important to simplify our platform. Today, for example, we have hundreds of different types of chips that are just quite complex. Our environment is complex, to Carlos' point, the mid and long term, we're going to just simplify, and it's going to allow us then to use the software really, in a very differentiative way. On one side, on the flip side of that is our supply chain is going to get much simpler as well. This type of experience that we have today with the shortages of semiconductors, we'll definitely plan to avoid in the future while providing value down the software channel. Thank you, Ned. Richard, you want to take the other one? Thanks, Carlos. We talked about the overall investments that EV plus software, in the period 2021 to 2025 being over EUR 30 billion. I think, on an annual basis, we're looking at something like 15%-20% of that number is related to the development of software components of this business plan. Clearly, we continue to believe that we are around 30% more efficient than our competition in the way we apply capital to our business. We can see that, we've talked about in the past. Again, with the platforms we're looking at across the global business and the software offerings we're looking at, we believe we can continue to be very efficient. We aren't holding back the business for lack of capital. We're clearly fully engaged in growing this area of the business and making sure that it has adequate resource to be successful. Just before we go to the next question, as a reminder, please press star one if you would like to ask a question. The next question comes from the line of Gabriel Adler from Citi. Please go ahead. Hi. Thanks for taking my questions. I've got two, please. The first one, how you plan to price for this additional content? Historically, the industry has sometimes struggled to pass through additional content and technology to customers in higher prices, with some customers reluctant to pay for additional technology. Your market research suggests that this is different with software, and you believe that your customers are willing to pay more for vehicles or via subscription, where there is more advanced connectivity. That's my first question. My second question is on China. I know that we'll get more details on the China strategy next year, given the particular importance of software in that region, I just wanted to ask whether your software strategy will need to differ for a successful turnaround in China specifically, what lessons you may have learned from the success of Chinese OEM when it comes to software. Thank you. Thank you for those two questions. I would like to take the first one, hand over to Yves for more details. One thing that I'm sure you recognize is the fact that the Stellantis top leadership team has a very strong track record in terms of enhancing the pricing power of our iconic brands and services. That's something that we can check, and we can demonstrate. Yes, we have discipline. We are able to manage our business, not only on the cost side, also on the revenue side. Of course, when we bring additional features, services, and entertainment, it has to attract the customer, which is, of course, the core of this journey. I think that in terms of revenue management, as much as making sure that we have the capability to extract from the markets what can be extracted in a way that is very disciplined, I think we have demonstrated that capability. I will hand over to Yves to talk to you more about the attractiveness of the products that we would bring to the market. Thank you, Carlos. I think you had this question of the cost pass-through. I would like to put two things forward here. One is the massive complexity reduction efforts that we're working on our hardware. This is huge. If you take any of the domains of the three tech platforms we announced today, they're going to replace massive complexity in terms of system that had accumulated over the years, and also, of course, in the context of the merger between former P and former F, where we have the two complexity coming together. The potential we have with synergy, combined with complexity reduction, massive complexity reduction on the hardware, is going to help us a lot on the cost side. Of course, this also comes together with the scalability of our hardware platform. We're working to make sure our platforms are scalable, that they can have the right cost for the B segment, STLA Small up to STLA Frame, and be extremely cost competitive as always as Stellantis. On top of that, I would like to add that the economics of software are actually fitting very well with the size of Stellantis, because we can develop the software features we've been talking about and deploy them on the full lineup and total global sales of Stellantis. We have here a very, very good fit between the economics and the scale of the company. Regarding China, I can tell you that we are on our way to fix it. Some of the work is already done, and it will be presented to you in March 2022. Some of those things have not been unveiled yet, just because of some regulatory reasons that will be vanishing away from January 1st, 2022. I can just tell you that we are on our way. We have a good pace of execution, good pace of negotiation, good pace of converging with our partners. Hopefully, I will tell you more, when we present the full plan. Some of those things are waiting for regulatory approval. Then from then, you will see that we are indeed fixing it. It's clear that has been a focus for the teams, coming from the two former companies that merge, both needed to fix it, and we are right now in good pace and good track to get the job done. Hopefully, I will present to you the final conclusion of this work, when we present the full plan in March the 1st, 2022. Thank you. The next question comes from the line of Patrick Hummel from UBS. Please go ahead. Yeah, thank you. Good afternoon, Carlos and Richard and team. Thanks for taking my question. Two questions, please. First, as far as the tech-type of margins are concerned, I have to be honest because the more I hear car companies talking about tech-like margins, basically everybody's talking about it, the less likely it seems to materialize to me, because I think the big difference between tech companies and car companies is these tech companies have a very dominant market position, and they've created unique ecosystems that enable them to charge these margins. Whereas if every car company with the market shares as they are today, plus some new entrants, is trying to create this, with the same competitive dynamics, also bearing in mind that it's a fixed cost-driven business with very low marginal cost to roll out the service, it seems difficult to me to end up in a scenario in which every player acts extremely disciplined and really stays very focused on monetizing rather than just selling the car and giving away some features for free. If you can just help me dispelling these concerns and what you're going to do to avoid such a situation, that would be great. The second part of the question is simply, just getting your feedback, if my math ends up well, you're basically saying out of the EUR 30 billion overall spend into the future growth areas, 15%-20% going into software, which to me sounds like it's about EUR 1 billion per year. Assuming a 20% EBIT margin on the business, it sounds like you need basically EUR 5 billion of annual revenues before you will break even with that business. Is that a fair back-of-the-envelope calculation to do? Well, thank you. Thank you for the two questions. I will take the first one, but I will let Richard answer the second one, now if he is willing to. If not, I will take the first one now. Sure, yeah. I'll do that? Okay. Let me take the first one. Your point is very fair. Your point is absolutely fair. Is the competition among the OEMs going to damage the lucrative margin potential of this business? That's a very, very fair question. I would like to share with you some of the things that makes us different from all the other OEMs in this regard. First, we have possibly the best brand portfolio of the automotive industry in the world, which means we are conveying a lot of emotion through our iconic brands. Our iconic brands can be a way to magnify those experiences and then protect the value of those features through the passion of our customers for those brands. That's one. We have, I believe, the best iconic brand portfolio of the worldwide automotive industry, and that potential of passion is going to help magnify the experience and therefore protect the value of those experiences. That's point number one. Point number two, when we talk about margins, we do not forget that we are talking about revenues and costs. You were highlighting, and rightly so, the pressure on the pricing. I would like to highlight our ability to have a highly competitive cost on three dimensions. First one, we have a significant scale that we can leverage. That's point number one. Point number two, as it was mentioned by Yves, we have seen a huge potential on diversity complexity that Ned has already commented. Diversity complexity reduction is one of our strengths. We have demonstrated that on the more conventional part of our business, and we will demonstrate again on the technology part of our business that we can generate a lot of cost reduction through the simplification of our technology footprint here. That's the second one. The third one is that we are around 30% more efficient in everything we do compared to our peers, anything that relates to R&D and CapEx expense. When you combine those three things, scale, diversity complexity reduction, ability to get the job done, and efficiency and effectiveness, you see that on the cost side of those margins, we may appear as being one of the most efficient companies in the world on that matter. It doesn't answer to your Faye points about the pressure on the revenues, on the revenue side, we have, of course, everything that relates to our brands, everything that relates to, of course, the quality of the talent that we are now hiring, and everything that relates also to our capability to execute and our capability to stay disciplined. A few years ago, we would have the same conversation about residual value. A few years ago, we would have the same conversation about pricing power. You can see what has happened over the last few years with Stellantis on this matter and the former companies of our company. That's something that we need to consider. At the end of the day, execution is going to be key, as we all know. Richard, back to you. Thanks, Carlos. Obviously, the part that Matthew did is arithmetically correct, I don't think it's irrelevant inasmuch as we're clearly building a transformational business here within the car company, to become a software-enabled services and features provider together with the mobility. We're investing in the platform for the new electric platform. We talked about the software platform. Those will be put together with the EV platforms that we talked about in July. Then the features and the connectivity will allow us to grow the business. At the moment, we're at investment phase, and then as we grow the business through to the EUR 4 billion of revenues by 2026 and the EUR 20 billion by 2030, clearly, this business will become more than self-funding and extremely profitable for the overall company. I think really we need to look at it, obviously, at the moment, we're in the phase where we're investing, and the level of revenue needs to grow. Clearly, that's the same in any business where you're having a transformational moment with the product offering. Thank you, Richard. I know that Yves wants to add something on this one. I think one key element is, in the EUR 20 billion revenue that we're communicating, we're talking about the software-enabled services. Take the example of a connected navigation system. What we include in the EUR 20 billion, be it in the so-called MSRP part or in the subscription, is the traffic live information that we're selling to the customer. There is also a revenue which is collected at the time when we sell the car, for the system itself, the electronic device and so on, which is not in the EUR 20 billion, which comes on top. Of course, this is something that also being invested. Just to want to make sure that we clarify that because the profitability of the business is already there today on the EUR 400 million of revenue that we're making. There is a little bit of non-full overlap between the R&D CapEx we're talking about and the revenue we're talking about, because we are very careful with the revenue to take only what's incremental and not belonging to the physical car itself. That's an important element to have in mind here. The next question comes from the line of Simon Chaudhoge from Les Echos. Please go ahead. Hello. You plan on selling more and more connected vehicles. Can you tell us what does it mean for your overall production and your factories? Do you think your car production will increase, or will it remain stable because of car sharing and subscription models? Well, it's a great question. I believe that what we are doing in terms of software is going to give us the ability to raise our share of the total market. Where is the total market going to go? That's something I don't want to speculate on based on many things that are not related to mobility that may impact the mobility of the citizens all over the world. In terms of competitiveness of our company, certainly enhancing the customer journey is going to give us more capability to grow share in a profitable way. That's clear. It's a matter of appeal. It's a matter of making the customer journey more enjoyable, more exciting. We believe that what we are now doing is going to give a better capability to all of our brands to raise their own share. That's quite clear. While we do this, what the total market will do, grow or decrease, is something that I don't want to speculate on. Of course, it's related to protecting the freedom of mobility of the world citizens. It's about making sure that we can offer them, of course, enjoyable, safe, clean, and affordable freedom of mobility. This is the reason why Stellantis has such a bright future. This is the reason why there is so much potential in our company. With this new direction, we are creating more breathing space for new talents to join us, and for those new talents to enjoy that breathing space, and the capability that we are offering them to unleash their full creative potential. This is exactly what we are trying to do. It's an exciting journey. I'm very excited by the potential of Stellantis. We have seen what has been done over the last year, I should say 11 months. It's amazing how many things have been done. It's amazing the passion of the Stellantis people to create those innovative plans and then to get them executed. That's where we are today. Of course, I will be blessed and honored to present to you the full plan on March 1st, 2022. The next question comes from the line of Philippe Houchois from Jefferies. Please go ahead. Thank you, good afternoon. Yes, very interesting question, presentations, I appreciate that. I want to go back to some of the software issues. The first one, I think, is on the benefit of scale that you talk about and the synergies that come with it. I'm just wondering about the opposite effect, the fact that you have 14 brands. You want to handle brands with those specialized services, and you're also dealing with regions in Europe and in the U.S. where customer requirements or needs are different. I'm just wondering if there's an opposite effect to the synergies of some dysenergies, a different form of complexity, or in other words, how scalable some of that technology is across regions. You have North America, you have Europe. You may talk to us about China in March, that would be interesting to me. The second point is a bit technical as well, data is obviously hugely important for the industry and for you're among the largest car makers in the world. Right now, you depend on providers of cloud services for your data protection, and some of them are competitors potentially. It's a very highly concentrated and therefore politically risky situation. Do you think you need to create your own cloud capabilities? Thank you. Those are two great questions. The first one about is there any downside from having 14 brands when we deploy our capability in terms of software. The second one is, how do we deal with the cloud services moving forward? On those two questions, I feel that Yves is really excited about giving you the answers. Yves, please. Thank you, Carlos. On the first one, I just would like to give an example. You showed the Jeep platooning feature in the presentation where we enable communication between the different cars on a trail. This is obviously resonating very well with our Jeep customers and their passion to go off-track. We're going to use the exact same software modules to create the same service with a different flavor for our friends and family brands, say Chrysler or Citroën in Europe, where you will have communication capabilities with two or three cars going on the motorway on a weekend, and they can now talk between each other. They can point their GPS navigation towards the car of their friends and stop together. They can maybe listen to the same music streaming at the same time, so they feel together. The beauty of software is we can take the microservice type of approach as we develop those features, and then we give them the right flavor to resonate with the DNA of the brand, as we've explained today. In this approach, we're avoiding the synergies that you were talking about in relation with brands, by getting to the next level of modularization in the technology. That to the brands. To the regions, we're acting with global platforms, taking, of course, into account the specificities of the regions. Here again, our plan is to reduce complexity to the maximum and be extremely modular in our code base. This is fundamental, and we've, I think, dig very deep into that to try and get it right. On the cloud thing, I think, yes, the market is very concentrated, but cloud operators have gained the level of efficiency that we would probably not be able to replicate in the short term. In the short term, we will definitely go the market route, but we also see a number of emerging cloud providers on the planet. I would say no short-term plan to create our own cloud solution. Maybe Ned, as part of the CTO, you want to comment to that as well. Yes. Thanks, Yves. First on the software piece. If you look at 14 brands, historically, a lot of these brands have developed complete vertically integrated software stack, or they had a partner developing it, so it's quite expensive. In the new world, we can actually build 80% of the software that's just used across all 14 brands. The 20% difference in a stack is the sort of customization and the services side and experience side the customers will enjoy brand to brand. As Yves talked about, this 80% is going to glue all the brands together is going to be a fantastic scale and a synergy opportunity for us. I'd say it's quite the opposite to the comment. On the data side, it's very hard to compete to the cloud providers and the scale that it provides. If you look at the cloud storage cost that we pay today, they've been sort of coming down in cost. We do anticipate that the cost on the storage on the cloud side is going to continue to climb down. Eventually, we're going to look at this space very closely. At the moment, it makes no sense to build our own cloud capabilities where the capital investment would be quite enormous to compete to somebody like existing providers. Obviously, we'll look at that space very closely in the future. I want to thank you all for your participation and for sharing this very important day with us. Our event ends here. Our tech journey continues, and we will be very happy to see you all at Stellantis booth at CES in Las Vegas. Thank you again. Goodbye, and keep well.